Under US monetary normalization, short-run capital outflows in portfolio investment (stock and debt market investment) could occur, which may have limited influence on the real economy in Korea. However, as there are not many policy tools that help to alleviate capital outflows in stock and debt markets, close monitoring of those markets are required. The Korean government should be aware that the volatility of the Korean won can hike during the process of US monetary normalization, which can lead to negative impacts on the economy through declining investment and exports.